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There are two approaches to retirement planning: top down and bottom up. The top down approach examines wage replacement. In other words, one can assume
There are two approaches to retirement planning: top down and bottom up. The top down approach examines wage replacement. In other words, one can assume that an individual should be able to live on a certain %age of their current income (i.e. 80%).The bottom up approach examines current spending and projects by category which expenses will increase and which will decrease. Compare the two approaches and discuss the advantages and disadvantages of each.
There are two approaches to retirement planning: top down and bottom up. The top down approach examines wage replacement. In other words, one can assume that an individual should be able to live on a certain %age of their current income (i.e. 80%).The bottom up approach examines current spending and projects by category which expenses will increase and which will decrease. Compare the two approaches and discuss the advantages and disadvantages of each.
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